Singapore, Hong Kong seek to calm nerves over Credit Suisse deal

Buildings are seen from Victoria Peak at night in Hong Kong, China, on Wednesday, Aug. 28, 2019. (Photographer: Paul Yeung/Bloomberg) (Bloomberg)

By Joyce Koh

(Bloomberg) — Financial authorities in Singapore and Hong Kong gave assurances Credit Suisse Group AG will remain open for business and its fallout won’t affect their markets after UBS Group AG agreed to buy the troubled Swiss bank in a historic government-brokered deal.

Credit Suisse will continue operating in Singapore with no interruptions or restrictions, the Monetary Authority of Singapore said in a statement Monday. Customers will continue to have full access to their accounts and the firm’s contracts with counterparties will remain in force, MAS said.

In a similar statement Monday, the Hong Kong Monetary Authority said Credit Suisse’s operations in the city will stay open.

The assurances from regulators in the two key Asian financial hubs underscore the uncertainties Credit Suisse customers, staff and other stakeholders are facing after the swift takeover announcement aimed at containing a crisis of confidence.

MAS stressed the takeover isn’t expected to affect the stability of Singapore’s banking system, while HKMA said the local banking sector and market’s exposure to Credit Suisse is insignificant.

Singapore’s regulator said it would stay in close contact with its Swiss counterpart and address any impact on employment. It said it stands ready to provide liquidity to ensure the city-state’s financial system remains stable.

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